What is Imperfect information?
Every purchase is based on a belief about the satisfaction that the good or service will provide. In turn, these beliefs are based on the information that the buyer has available. For many products, the information available to the buyer or the seller is imperfect or unclear, which can either make buyers regret past purchases or avoid making future ones.
Related Topics
- Imperfect information
- Asymmetric Information
- Imperfect Information – Equilibrium Price and Quantity
- Is Consumer Behavior Rational in Economics?
- Insurance
- Government and Social Insurance
- Fundamental Law of Insurance
- Risk Groups
- The Moral Hazard Problem
- The Adverse Selection Problem
- Government Regulation of Insurance